problems with MA-crossing

Discussion in 'Technical Analysis' started by bora, Nov 7, 2002.

  1. cathy am i right in assuming you get whipped a bit if trend stalls and starts to chop? Is there anything you can do to mitigate losses in this instance? are you exiting on the BBs?
    #11     Nov 8, 2002
  2. bobcathy1

    bobcathy1 Guest

    Yes, my theory is not as simple as it seems.

    I only enter when:
    there is sufficent room between the MA cross and the Bollinger Bands.
    the stochastics indicate a nice move.
    it is in high momentum times of day 9:30 to 12 or 2-4.

    I exit when.
    the prices seem to hesitate too much.
    when it pierces a bollinger band.
    when the stochastics start to reverse.
    or the cross fails.
    #12     Nov 8, 2002
  3. bora


    I looked at historical data and wrote on a paper what my entry & exit would be using this system. I started at year 97 and stopped in 99, my conclusion was that it was worthless. It missed the big moves in 97, 98 and 99. I haven't tried 2000, 2001, and 2002 YTD because it felt as a waste of time.
    #13     Nov 8, 2002
  4. If the MAs crossover and shows a signal for long, but the bar is a black bar(open > close). Will you still take the trade?
    #14     Nov 8, 2002
  5. Peri


    I don't strictly apply it but it is a consideration. On a 1 min chart I actually like to enter as the 3 changes direction, something stubborn in me that want's to get those tops and bottoms they say can't be had, assuming the 3 and 13 are at a reasonable distance from the 39( nothing close or converging) Stochastics are a must regarding any entry. If all goes well I will add as the 3 and 13 cross.
    #15     Nov 10, 2002